What are the requirements for company incorporation or company registration in Dubai and UAE? How much does it cost to register a company in Dubai? Is it possible to stay in the UAE by registering a company?
The United Arab Emirates (UAE) is located in the east of the Arabian Peninsula and southwest Asia. It is bordered on the north and northwest by the Persian Gulf, on the east by Oman, and on the south and southwest by Qatar and Saudi Arabia.
The UAE is one of the most millionaire countries in Western Europe because of its vast oil reserves. This has changed the country from an ordinary emirate to a modern and advanced country for the education and life system. Abu Dhabi is the UAE’s capital.
Dubai is an international hub and one of the most important cities in the UAE. Due to its size, this country is ranked 115th in the world in terms of breadth. It has a population of more than 8 million people.
For this reason, some businessmen and traders consider the UAE, especially Dubai as a suitable place to start an international business and Company Registration in Dubai.
Most people choose UAE free zones such as Sharjah, Ras Al Khaimah, Dubai, Ajman and Jabel Ali to register a company. Why? Because it has benefits such as:
- non-payment of taxes
- 100% ownership of a registered company
- determining a flexible investment for the distribution of goods
Coverdale Consultants assist their clients to register company in Dubai. Ask us your questions in detail. You can consult Coverdale experts to receive advice or inquire about costs.
Company Registration in Dubai
Over the past decade, the UAE has started and completed large-scale business activities and has accelerated its economic growth.
The existence of simple laws in the financial, administrative and customs sectors has encouraged more traders and merchants to do business with this country.
Income tax of 0%, VAT (value added tax) of only 5% and the possibility of 100% ownership of companies without Emirati sponsors (in the UAE free zones) in recent years has been one of the temptations for businessmen and producers to register a company in the UAE.
In fact, the existence of tax exemptions, as well as the quick and easy conduct of business and commerce without cumbersome rules, has led to the fact that today most reputable business brands, establish an agency or even establish a branch of their factory in the UAE And especially the city of Dubai, which has been called the beating heart of Asian trade.
In the last year, not only businessmen have a great desire to investment and company registration in Dubai, but also ordinary people are very eager to getting residency or find work in this country, especially in Dubai.
minimum investment to start business in dubai
Company registration fee in Dubai
The cost of registering a company in Dubai depends on the type of company you intend to register. It is good to know that 99% of investors start their business by registering an LLC with a Commercial License, which costs about 35 thousand dirhams.
Which company should we register?
About 12 types of companies can be registered in the UAE, but LLC or the limited liability company with a commercial license (which we will explain below) is suitable for many investors. In this type of company, you can have 49% of the company’s shares, and 51% of it must be in the name of a person with UAE citizenship as a sponsor.
The sponsor or guarantor does have no share in your profit and loss. He does not have access to company accounts, etc. This person is just the interface of your interactions for administrative affairs and receives an annual fee from you.
What is a commercial license?
The UAE government has considered 4 types of licenses for company registration in this country, especially in Dubai, which you must obtain after registering the company. These 4 types of licenses are:
- Industrial license: People who are looking to produce goods in this country, need such a license.
- Professional License: This license is for performing services such as medicine, technology services, advocacy, accounting, consulting, etc.
- Commercial License: This license is issued by the UAE government for buying and selling and all kinds of bussiness and commercial activities in this country.
- Tourism License: This license is issued only for the establishment of companies with tourism activities and for carrying out matters related to tourists’ short residence for recreation and excursions within the cities of the UAE, including Dubai.
register company in dubai – complete steps
Company registration process in Dubai
You cannot register a company in the UAE in all areas of activity, or you can do several different unrelated jobs with one company. Before traveling to Dubai and the UAE to register a company in this country, you can first consult Coverdale experts.
You can leave the company registration process in the UAE to us at the cost mentioned above or:
- Entered the Emirate as a tourist (tourist visa)
- Submit your company registration application to the Abu Dhabi Department of Economic Development
- Obtaining a business license (for buying and selling, importing and exporting goods in the UAE, as well as activities such as real estate brokerage)
- Convert tourist visa to investor visa
- finally get a 3-year and renewable residence
Since this process may take between 30 and 40 days, businessmen or Company registration applicants in general in the UAE and Dubai must reside in the UAE for the entire duration of the procedure.
Terms of company registration in Dubai
The necessary documents and conditions for registering a company in Dubai are:
- photocopy of identification documents of all persons (valid ID or passport)
- Company Articles of Association (required to be translated into the official Arabic language)
- Business Plan
- Company registration application form
- Certificate of initial capital Deposit Bank
- Financial ability certification to provide the required capital
- Certificate of no criminal record
- Tax return report
- Full payment of tax fees
- complete list of members (along with the list of insurance payments of individuals)
Who is the sponsor of Dubai?
The conditions for establishing a company in Dubai, such as Kuwait, Oman and many Arab countries, are special.
Private structure is the first element that you should pay attention to before registering a company in UAE. Registration of a company in Dubai without an Emirati sponsor is not possible for all investors. For example, in the case of a water and marine company, you must have a local partner.
An Emirati sponsor is someone who owns at least 51% of the shares in a company.
However, to register a company in the Dubai Free Zones, such as Ras Al Khaimah, you do not need a local partner and you can have full ownership of a company. This is a good thing for foreign investment, which encourages investment in this country.
The advantages of incorporating a company in Dubai and the UAE
The UAE has welcomed physicians, elites and investors in the last two years, especially since the outbreak of Covid-19, and has often offered a number of incentive and support schemes. Therefore, business development and support of the UAE for this work is one of the most important benefits of registering a company in this country.
Existence of various jobs, abundant support for business development, existence of favorable infrastructures for foreign investment, progressive economic growth, etc. have all caused many people to register a company and start a business in this Asian country.
Here are some of the most important benefits of registering a company in Dubai:
- The government is always working to improve foreign trade conditions.
- The UAE economy is stable and developing.
- The foreign labor force can easily enter this country and take manpower from its own country for its company.
- There are various loans and financial facilities to support business.
- By registering a legal company in the UAE or Dubai, you can apply for residency for yourself and your & your partners’ family members.
- By registering a company in Dubai, owners of capital can engage in free trade. You can even buy real estate in the UAE.
- In various fields of tourism, culture, etc., the facilities are diverse.
- There is a lot of funding for various companies in this country, including tourism companies.
Business setup in Dubai, UAE | All types of companies
Types of companies for registering in Dubai
Coastal company: UAE market is the field of activity of this type of company.
Foreign company: It can be registered in the UAE, but it is not active in the country and, as its name suggests, operates outside the UAE.
Free Zone Company: The scope of activity of this company is in free zones.
Subsidiary: This Company is subject to foreign companies operating in the UAE.
Trading companies: These companies serve real people and carry out their transactions.
It is worth mentioning that Public shareholding company, Limited partnership, General partnership, Private shareholding company, Limited liability Company, and Joint venture or consortium are different business incorporation types in the United Arab Emirates. One of the most common types of company registration in the UAE is limited liability registration. If you have registered your company in Dubai, you will have to pay annual fees for municipal, property and other factors.
Frequently Asked Questions
1- How much does it cost to register a company in Dubai?
The cost of registering an LLC in the UAE with all deposits is about 35,000 dirhams, depending on which region it is in, but in general it is about the same.
2- Is it possible to apply for residency in Dubai by registering a company?
By company registration in Dubai, you cannot get permanent residence in the UAE. But it is possible to get a 3-year renewable residence for yourself and your family members.
3- Can my business partner apply for residency himself/herself?
Yes, he/she can apply for residency in Dubai. All the terms and benefits are the same for the partners.
4- Can foreigners register a company in Dubai?
Yes, Dubai actively welcomes investors and business owners from overseas.